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Foreign Affairs, Trade and Development Canada

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Rebate of the Federal Excise Tax (FET) on personal purchases of Fuel and Diesel

Supplies of petroleum products in Canada are normally subject to the FET. The rates of FET are specified on the Canada Revenue Agency website.

Canadian legislation, namely the Excise Tax Act, provides an exemption of the Federal Excise Tax (FET) on gasoline and diesel fuel to certain categories of accredited foreign representatives. The Canada Revenue Agency (CRA), which administers the Excise Tax Act, is responsible for processing FET refund applications.

About the refund process

Diplomats are entitled to claim a rebate of the FET based to the extent of Article 68.3 of the Excise Tax Act, which states that:

68.3

(1) Where taxes under Parts III and VI have been paid in respect of gasoline or diesel fuel purchased by a diplomat for his personal or official use, an amount equal to the amount of the taxes shall, subject to this Part, be paid to the diplomat if the diplomat applies therefore within two years after the purchase of the gasoline or diesel fuel.

Designation order

(2) The Governor in Council, on the recommendation of the Minister of Foreign Affairs certifying that Canadian diplomats posted in a foreign country are granted relief from tax on gasoline or diesel fuel, may, by order, designate the foreign country for the purposes of this section.

Definition of “diplomat”

(3) In this section, “diplomat” means a person referred to in section 2 of Part II of Schedule III who represents a country designated by an order made under subsection (2).

Part II of Schedule III section 2

Diplomatic

1. Articles for the use of the Governor General.

2. Articles imported for the personal or official use of the Heads of Diplomatic Missions, High Commissioners representing other of Her Majesty’s Governments, Counsellors, Secretaries and Attachés at Embassies, Legations and Offices of High Commissioners in Canada, Trade Commissioners and Assistant Trade Commissioners representing other of Her Majesty’s Governments, Consuls General, Consuls and Vice-Consuls of Foreign Nations, who are natives or citizens of the countries they represent and are not engaged in any other business or profession.

To obtain a refund of the FET, eligible diplomats must complete the appropriate form and return it to the CRA.

General enquiries regarding this privilege, including questions concerning its application to categories of foreign representatives, can be directed to the Privileges and Immunities Unit of the Office of Protocol at 613-944-1159.

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Date Modified:
2012-07-23